Duluth (DLTH)

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Duluth (DLTH) - 2026 Q1 - Earnings Call Presentation
2025-06-05 11:13
Investor Presentation First Quarter 2025 June 5, 2025 Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including statements concerning Duluth Trading's plans, objectives, goals, beliefs, business strategies, future events, business conditions, its results of operations, financial position and its bus ...
Duluth Holdings Inc. Announces First Quarter 2025 Financial Results
Globenewswire· 2025-06-05 09:45
Core Insights - Duluth Trading Company reported a net loss of $15.3 million for the fiscal first quarter ended May 4, 2025, compared to a net loss of $7.9 million in the same period last year, indicating a significant decline in profitability [7][28] - The company is focusing on business simplification and enhancing brand awareness to drive shareholder value and return to profitable growth [8][5] Financial Performance - Net sales decreased by 12.0% to $102.7 million from $116.7 million in the prior year [9] - Direct-to-consumer net sales fell by 17.1% to $62.6 million, while retail store net sales decreased by 2.6% to $40.2 million [9] - Adjusted EBITDA decreased by $5.6 million to $(3.8) million, representing (3.7%) of net sales [7] - Gross profit margin decreased by 80 basis points to 52.0%, with gross profit declining to $53.4 million from $61.6 million [10] Cost Management - Selling, general and administrative expenses decreased by 6.9% to $65.7 million, but as a percentage of net sales, these expenses increased to 64.0% from 60.5% [11] - The company has initiated expense savings measures to right-size its business [7] Balance Sheet and Liquidity - The company ended the quarter with cash and cash equivalents of $8.6 million and net liquidity of $44.6 million [12] - Total current liabilities increased to $156.9 million from $128.6 million in the prior year [26] Management Strategy - The new CEO, Stephanie Pugliese, emphasized the need for decisive actions to simplify the business and focus on core strengths, including product innovation and customer service [8] - The company is committed to optimizing its product sourcing and fulfillment center network [8] Fiscal Outlook - Duluth Trading is maintaining its previously issued fiscal 2025 financial guidance, with updates to be provided as the macroeconomic environment changes [13]
Duluth Holdings Inc. to Report First Quarter 2025 Financial Results on June 5
Globenewswire· 2025-05-22 09:45
Group 1 - Duluth Trading Company will report its first quarter 2025 financial results on June 5, 2025, before market opening [1] - A conference call and audio webcast for analysts and investors will take place on the same day at 9:30 am Eastern Time to discuss the results [1] - The company provides a unique customer experience through humor and storytelling in its marketing, emphasizing the quality of its casual wear and workwear [2] Group 2 - Duluth Trading is based in Mount Horeb, Wisconsin, and focuses on high-quality, solution-based apparel for a hands-on lifestyle [2] - The company operates through a content-rich website, catalogs, and distinctive retail locations, ensuring a strong customer service commitment with its "No Bull Guarantee" [2] - Investors can access the conference call replay until June 12, 2025, using specific domestic and international numbers [3]
Duluth Holdings Inc. Announces Retirement of Director
Globenewswire· 2025-03-26 09:45
Core Points - Duluth Trading Company announced the retirement of Francesca M. Edwardson from its Board of Directors [1][2] - Ms. Edwardson has been a board member since September 2015 and will continue until the 2025 Annual Meeting of Shareholders [2] - Stephen L. Schlecht, Chairman of Duluth Holdings, expressed gratitude for Ms. Edwardson's contributions and highlighted her expertise in corporate governance [3] Company Overview - Duluth Trading is a lifestyle brand offering high-quality workwear, casual wear, and outdoor apparel for men and women [4] - The company is based in Mount Horeb, Wisconsin, and focuses on providing a unique customer experience through humor and storytelling in its marketing [4] - Duluth Trading emphasizes outstanding customer service with its "No Bull Guarantee," ensuring customer satisfaction [4]
Duluth (DLTH) - 2025 Q4 - Annual Report
2025-03-21 22:01
Financial Performance - Net sales in fiscal 2024 decreased by $20.1 million, or 3.1%, to $626.6 million compared to $646.7 million in fiscal 2023[166] - Net loss in fiscal 2024 was ($43.6) million compared to a net loss of ($9.9) million in the prior year[153] - Adjusted EBITDA in fiscal 2024 decreased by $18.0 million to $14.6 million, representing 2.3% of net sales compared to 5.1% in fiscal 2023[176] - Gross profit decreased by $16.5 million, or 5.1%, to $308.5 million, with a gross margin of 49.2% in fiscal 2024 compared to 50.3% in fiscal 2023[168] - Selling, general and administrative expenses increased by $3.1 million, or 0.9%, to $337.6 million, representing 53.9% of net sales in fiscal 2024[169] - The decrease in net sales was primarily driven by lower average unit retail prices and processing delays at a legacy fulfillment center[166] - For the fiscal year ended February 2, 2025, Duluth Holdings Inc. reported a net loss of $43.6 million, compared to a net loss of $9.9 million for the previous fiscal year[240] - The operating loss for the fiscal year ended February 2, 2025, was $(36,861,000), compared to an operating loss of $(9,569,000) in the prior year[345] Cash Flow and Working Capital - Free cash flow decreased by $14.8 million to ($25.2) million in fiscal 2024 compared to ($10.4) million in fiscal 2023, primarily due to higher inventory levels[178] - Net cash used in operating activities was ($16.9) million for fiscal 2024, compared to $38.7 million provided in fiscal 2023[186] - As of February 2, 2025, working capital was $63.1 million, including cash and cash equivalents of $3.3 million[179] - The company expects cash flow from operating activities and credit availability to cover working capital and capital expenditure needs for the foreseeable future[181] Inventory and Assets - Inventory increased by $40.8 million in fiscal 2024, while trade accounts payable increased by $22.9 million[186] - Total current assets increased to $191,631 thousand as of February 2, 2025, compared to $180,974 thousand at the end of the previous fiscal year[229] - Inventory levels rose to $166,545 thousand, up from $125,757 thousand, suggesting potential overstock issues[229] - The inventory reserve for excess, obsolete items and shrinkage increased to $2.1 million as of February 2, 2025, from $1.4 million in the previous year[264] Expenses and Liabilities - Interest expense increased by $0.4 million to $4.6 million in fiscal 2024 due to higher interest rates on outstanding debt[171] - Income tax expense was $2.4 million in fiscal 2024 compared to an income tax benefit of $2.9 million in fiscal 2023[172] - Total liabilities increased slightly to $272,763 thousand from $271,460 thousand, indicating stable leverage[229] - Total accrued expenses and other current liabilities increased to $35.684 million as of February 2, 2025, from $34.111 million as of January 28, 2024[315] Capital Expenditures and Investments - Capital expenditures for fiscal 2024 were $17.4 million, with an expected increase to approximately $20.0 million in fiscal 2025[180] - Net cash used in investing activities was $8.1 million in fiscal 2024, down from $48.7 million in fiscal 2023[189] - The company has a credit facility with a revolving commitment of $100.0 million following amendments made in January 2025[194] Shareholder Equity and Stock - The company’s total shareholders' equity decreased to $179,679 thousand from $219,750 thousand, indicating a decline in net worth[229] - The weighted average shares of common stock outstanding increased to 33,368 thousand from 32,955 thousand, reflecting potential dilution[231] - Total stock compensation expense associated with restricted stock was $4.0 million for fiscal 2024, a decrease of 4.76% from $4.2 million in fiscal 2023[283] Tax and Valuation - Total income tax expense for the fiscal year ended February 2, 2025, was $2,370,000, compared to a tax benefit of $(2,862,000) for the previous year[330] - The company recognized a valuation allowance of $11.8 million against deferred tax assets as of February 2, 2025, due to cumulative losses over the past 36 months[332] Operational Metrics - Direct-to-consumer revenue for the fiscal year ended February 2, 2025, was $419.860 million, down from $425.562 million in the previous year[325] - Store revenue for the fiscal year ended February 2, 2025, was $206.769 million, a decline from $221.119 million in the prior year[327] - The company incurred advertising and catalog expenses of $67.5 million for fiscal 2024, down from $69.0 million in fiscal 2023, reflecting a decrease of approximately 2.2%[255] - Shipping and processing expenses were $43.7 million for fiscal 2024, compared to $47.2 million in fiscal 2023, indicating a reduction of about 9.4%[258]
Down -26.32% in 4 Weeks, Here's Why Duluth Holdings (DLTH) Looks Ripe for a Turnaround
ZACKS· 2025-03-20 14:35
Group 1 - Duluth Holdings (DLTH) has experienced significant selling pressure, resulting in a 26.3% decline over the past four weeks, but it is now considered to be in oversold territory with expectations of better earnings ahead [1] - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - The RSI reading for DLTH is currently at 29.58, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium [5] Group 2 - There has been a strong consensus among sell-side analysts to raise earnings estimates for DLTH, with a 9.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - DLTH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]
Duluth (DLTH) - 2025 Q4 - Earnings Call Transcript
2025-03-13 20:52
Financial Data and Key Metrics Changes - The fourth quarter results fell short of expectations due to processing delays at the legacy fulfillment center [3] - The company finished the quarter with $103 million in liquidity and no debt, indicating a strong financial position despite challenges [4] Business Line Data and Key Metrics Changes - Promotional adjustments after Cyber Monday reduced top line revenue while limiting gross margin pressure [4] Market Data and Key Metrics Changes - Specific market data and metrics were not disclosed in the provided content Company Strategy and Development Direction and Industry Competition - The company is focused on the "Big Dan Blueprint" initiatives, which are strategic efforts designed to transform the business and unlock growth and profit potential [3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in fulfilling orders and emphasized the need for immediate corrective actions [3] - The fourth quarter results did not meet expectations, but the company is optimistic about the foundational progress made in 2024 [3] Other Important Information - Sam Sato, the President and CEO, is retiring, and his contributions to the company were acknowledged by the Board of Directors [5] Summary of Q&A Session Questions and Answers - There was no Q&A session following the presentation, as noted in the conference call introduction [1]
Duluth (DLTH) - 2024 Q4 - Earnings Call Transcript
2025-03-13 17:29
Financial Data and Key Metrics Changes - Net sales for Q4 2024 declined 1.8% to $241 million, with direct channel sales flat and retail store sales down 6.9% due to decreased traffic [7][36] - Adjusted EBITDA for Q4 was approximately $8.5 million, with a reported EPS loss of $0.17 and adjusted EPS loss of $0.04 [36][40] - Full year 2024 net sales were $626.6 million, down 3.1% compared to the prior year, with an adjusted net loss of $23.6 million [44][46] Business Line Data and Key Metrics Changes - Direct channel sales remained flat, while retail sales decreased due to lower foot traffic and average order value (AOV) [37] - Mobile sales grew 4% year-over-year, accounting for nearly 70% of site visits and 58% of digital sales [15][37] Market Data and Key Metrics Changes - The company experienced a gross margin contraction of 410 basis points in Q4, driven by an AUR decline of 8.9% [38] - Full year gross margin ended at 49.2%, down 110 basis points, primarily due to deeper promotions to reduce excess inventory [44] Company Strategy and Development Direction - The company is focused on a transformation strategy called the Big Dam Blueprint, aimed at unlocking growth and profit potential [6][12] - Strategic initiatives include direct-to-factory sourcing, enhancing logistics and fulfillment capabilities, and revitalizing the retail store portfolio [12][18] - The omnichannel strategy is crucial, with plans to enhance mobile experiences and open new stores in priority markets [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in fulfilling orders and emphasized the importance of improving logistics and inventory management [6][30] - The outlook for fiscal 2025 projects net sales between $570 million and $595 million, with anticipated gross margin expansion of approximately 300 basis points [47][48] Other Important Information - The company ended 2024 with no debt and $103 million in liquidity, providing flexibility for operations [30][43] - A leadership transition is underway, with the current CEO announcing retirement effective April 25, 2025, and the Chairman taking over day-to-day operations [32][55] Summary of Q&A Session Questions and Answers - There was no question-and-answer session following the presentation, as noted in the call introduction [1]
Duluth (DLTH) - 2025 Q4 - Annual Results
2025-03-13 10:04
Financial Performance - Net sales for the fourth quarter decreased by 1.8% to $241.3 million compared to $245.6 million in the prior year[5] - The company reported a net loss of $5.6 million for the fourth quarter, compared to a net income of $6.8 million in the prior year[5] - Adjusted EBITDA for the fourth quarter was $8.5 million, down from $20.9 million in the prior year[5] - For the full fiscal year, net sales were $626.6 million, a decrease from $646.7 million in the prior year[5] - The company experienced a net loss of $43.6 million for the full fiscal year, compared to a net loss of $9.9 million in the prior year[5] - Adjusted EBITDA for the fiscal year ended February 2, 2025, was $14.62 million, down from $32.67 million in the previous fiscal year[36] - The company forecasts a net loss between $26.80 million and $21.50 million for the fiscal year ending February 1, 2026[43] - Free cash flow for the fiscal year ended February 2, 2025, was $(25.25) million, compared to $(10.41) million in the previous year[38] Sales Breakdown - Direct-to-consumer net sales increased by 0.4% to $172.9 million in the fourth quarter, while retail store net sales decreased by 6.9% to $68.4 million[9] - Net sales for the three months ended February 2, 2025, were $241.27 million, a decrease of 1.4% from $245.61 million for the same period last year[32] Profitability Metrics - The gross profit margin decreased to 44.1% of net sales, down from 48.2% in the prior year, primarily due to increased discounting[10] - Gross profit for the fiscal year ended February 2, 2025, was $308.51 million, down 5.1% from $324.97 million in the previous fiscal year[32] Liquidity and Debt - The company ended the quarter with a liquidity of $103.3 million and no debt on the credit facility[1] - Cash and cash equivalents at the end of the period were $3.34 million, a significant decrease from $32.16 million at the beginning of the period[34] - Total assets decreased to $452.44 million as of February 2, 2025, from $491.21 million as of January 28, 2024[29] - Total current liabilities increased to $128.55 million as of February 2, 2025, compared to $105.63 million in the previous year[29] Strategic Initiatives - The company plans to expand its Duluth Women's Heirloom and Garden collection and introduce new products featuring Armachillo cooling technology[7] Future Outlook - Fiscal 2025 outlook includes net sales projected in the range of $570 million to $595 million and adjusted EBITDA in the range of $20 million to $25 million[18] - The company incurred restructuring expenses of $7.75 million during the fiscal year ended February 2, 2025[32]
Duluth Holdings Inc. Announces Retirement of CEO Samuel M. Sato
Globenewswire· 2025-03-13 09:46
Leadership Transition - Samuel M. Sato plans to retire as President and CEO of Duluth Trading effective April 25, 2025, and will also step down from the Board [2] - Stephen L. Schlecht, the Chairman of the Board and founder, will assume day-to-day leadership during the transition period with Mr. Sato's assistance [2][3] - The Board of Directors is conducting a search for a new CEO to replace Mr. Sato [2] Company Commitment - Mr. Schlecht expressed a deep commitment to the ongoing success of Duluth Trading and aims to ensure continuity in vision and strategy execution during the leadership transition [3] - The company has a talented senior leadership team that is committed to maintaining business operations without disruption [3] Company Overview - Duluth Trading is a lifestyle brand offering high-quality workwear, casual wear, and outdoor apparel for men and women [4] - The company emphasizes customer engagement through humor and storytelling in its marketing, and it operates through a content-rich website, catalogs, and unique retail locations [4] - Duluth Trading is dedicated to outstanding customer service, backed by its "No Bull Guarantee" [4]